Cash-strapped Kenya Airways will once again get financial assistance from taxpayers, with its KSh103 billion debt set to be paid by the State.
According to a country report by the International Monetary Fund (IMF), The move is aimed at helping the airline cruise through the financial turbulence that has for long characterised its operations,
KQ was allocated KSh36.6 billion to help with its reorganisation in the budget for the current financial year ending June next year as part of the Government’s strategic investments in public enterprises.
This will bring the total amount of capital injected into the troubled airline by the State to KSh63.2 billion after it was awarded KSh26.6 billion in the financial year ending June 2022.
The Standard reports that between 2016 and 2020, the State advanced KQ KSh35 billion, bringing the total loans to the airline to KSh98.2 billion.
Further, if the KSh85.2 billion State guarantees for loans taken by the airline by the end of June 2020 are added, as contained in its annual report, then taxpayers are staring at a possible liability of KSh183.4 billion should the firm default.